CPA tips for building an emergency fund when savings fall short

More than three-quarters of American adults have set aside money in a savings/emergency fund, but many are falling short of CPAs’ recommendation for how much they save, and some aren’t saving anything at all.

Twenty-two percent of 2,091 American adults surveyed by The Harris Poll in March on behalf of the AICPA for National Financial Literacy Month said they had no money in savings or an emergency fund to cover extra expenses. CPAs who specialize in personal financial planning typically advise clients to have at least six to eight months of living expenses set aside.

“It’s encouraging to see that Americans are prioritizing their savings as they also manage the rising costs of many living expenses. The concern is that not everyone has been able to make that happen, which can leave them financially vulnerable,” Cary Sinnett, senior manager–Personal Financial Planning at the AICPA, said in a news release.

Twenty-five percent of women, compared with 17% of men, said they had nothing set aside, and 30% of adults age 45–54 said the same.

Among the entire survey population:

• 20% have less than three months of living expenses saved;
• 24% have three to six months saved;
• 10% have seven to nine months saved;
• 6% have 10 to 11 months saved; and
• 18% have a year or more saved.

“Financial insecurity shapes daily life, and consumers certainly don’t need a catastrophe to feel the consequences of not having savings,” Sinnett said. “Even modest savings can help avoid trade-offs that affect health, career, and family.”

National Financial Literacy Month ends Thursday, but the efforts of CPAs to help shore up financial security continue. The AICPA offered four savings tips from CPAs:

Make saving effortless with automation
An easy way to build savings is to remove willpower from the equation and treat saving like paying yourself first. Set up automatic transfers from checking to savings, especially on payday, to build your savings steadily without having to think about it. When saving becomes a habit rather than a decision, progress happens almost unnoticed.

Give your savings a purpose
Saving is easier when it’s tied to something meaningful — whether that’s an emergency fund, a future trip, or simply peace of mind. Breaking larger goals into smaller milestones helps you see progress faster and stay encouraged along the way.

Find savings wins in small spending shifts
A quick review of your spending often reveals easy opportunities to save without sacrificing what you enjoy most. Redirecting even a few small expenses toward savings can build meaningful momentum over time.

Put your savings where it can work best for you
Keeping short‑term savings in accessible, low‑risk accounts like high‑yield savings options allows your money to grow while staying available when you need it. This can give you confidence that your savings are both secure and purposeful.

Helpful articles on topics such as budgeting, debt, filing taxes, teaching kids about money, and more can be found on the AICPA’s Financial Literacy Resources web page.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.